Deutsche Bank 18th Annual Leveraged Finance Conference
12 June 2014
1
Disclaimer
This presentation has been prepared solely for use at this presentation. By attending the meeting wher e this presentation is made, or by reading the pres entation slides, you agree to be bound by the following limitations.
This presentation is not an offer for sale of secur ities in the United States or in any other jurisdic tion where such offer or sale would be unlawful. An y securities referred to herein may not be sold in the United States absent registr ation or an exemption from registration under the U .S. Securities Act of 1933, as amended. Grupo Antol ín-Irausa, S.A. (the “Company”, which expression should mean the Company and/or its subsidiaries, as appropriate) does not intend to register any portion of any offering of t he Company’s securities in the United States or to conduct a pub lic offering of any securities in the United States .
This presentation has been prepared for information and background purposes only. It is confidential a nd does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company o r any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purch ase or subscribe for any securities of the Company or any member of its group or with any other contrac t or commitment whatsoever.
Neither this presentation nor any part of it may be reproduced (electronically or otherwise) or redist ributed, passed on, or the contents otherwise divulg ed, directly or indirectly, to any other person (excluding the recipient's profess ional advisers) or published in whole or in part fo r any purpose without the prior written consent of the Company. This presentation does not purport to be all-inclusive o r to contain all of the information that a person c onsidering the purchase of any offered securities ma y require to make a full analysis of the matters referred to herein. Each re cipient of this presentation must make its own inde pendent investigation and analysis of any offered s ecurities and its own determination of the suitability of any investment, with particular reference to its own investment ob jectives and experience and any other factors which may be relevant to it in connection with such investment, based in each case on an offering memorandum (including any supplemen t thereto) which may be prepared in connection with any offer or sale of Company securities, and on such other informatio n and advice from its own legal, accounting and tax advisers as it deems relevant.
This presentation may contain certain forward-looki ng statements that reflect Company management’s int entions, beliefs or current expectations. These for ward-looking statements include, but are not limited to, all sta tements other than statements of historical facts, including, without, limitation, those regarding the Company’s future financial position and results of operations, strategy, plans , objectives, goals and targets and future developm ents in the markets where the Company participates or is seeking to participate. The Company’s ability to achieve its p rojected results is dependent on many factors which are outside management’s control. Actual results m ay differ materially from (and be more negative than) those projected or impl ied in the forward-looking statements. Such forward -looking information involves risks and uncertainti es that could significantly affect expected results and is based on certain key assumptions. Due to such uncertainti es and risks, readers are cautioned not to place un due reliance on such forward-looking statements as a prediction of actua l results. All forward-looking statements included herein are based on information available to the Co mpany as of the date hereof. The Company undertakes no obligation to upd ate publicly or revise any forward-looking statemen t, whether as a result of new information, future e vents or otherwise, except as may be required by applicable law. All su bsequent written and oral forward-looking statement s attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary sta tements.
To the extent available, the industry, market and c ompetitive position data contained in this Presenta tion come from official or third party sources. Third party industry publications, studies and surveys generally state t hat the data contained therein have been obtained f rom sources believed to be reliable, but that there i s no guarantee of the accuracy or completeness of such data. While the Co mpany believes that each of these publications, stu dies and surveys has been prepared by a reputable s ource, the Company has not independently verified the data contained t herein. In addition, certain of the industry, mark et and competitive position data contained in this presentation come from the Company's own internal research and estimates based on the knowledge and experience of the Company's m anagement in the market in which the Company operates . While the Company believes that such research and estimates a re reasonable and reliable, they, and their underly ing methodology and assumptions, have not been veri fied by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the i ndustry, market or competitive position data contained in this present ation.
No representation or warranty, express or implied, is made as to the fairness, accuracy or completenes s of the information contained herein. None of the Company, its advisers, shareholders, connected persons or any other person accepts any liability for any loss howsoever arisi ng, directly or indirectly, from this presentation or its contents. This shall not, however, restrict or exclude or limit any duty or liability to a person under any applicable laws or regulations of any jurisdiction which may not l awfully be disclaimed (including in relation to fraudulent misrepresentat ion).
Grupo Antolin
Section 1Business overview
3
Leading positions across the globe
�Grupo Antolin is a leading global Tier 1 supplier of automotive components for vehicle interiors
�Present in 25 countries with more than 120 facilities and over 25 technical commercial offices
� Supplying components for 1 out of every 4 vehicles manufactured around the world
� Providing components for 300 different models
� In 2013, Grupo Antolin generated revenues and EBITDA of €2.13bn and €238m respectively (11.2% EBITDA margin )
�The Antolin family is sole shareholder of Grupo Antolin
1ToyotaCorolla
2Ford Focus
3Ford F-Series
4ToyotaCamry
5Hyundai Avante (Elantra)
6HondaCivic
7HondaCR-V
8FordFiesta
9ChevroletCruze
10VolkswagenJetta
1Volkswagen Golf
2Ford Fiesta
3Renault Clio
4VolkswagenPolo
5Peugeot208
6Opel Corsa
7FordFocus
8Nissan Qashqai
9BMW 3Series
10Opel Astra
1Ford F-Series
2Chevrolet Silverado
3 Toyota Camry
4 Honda Accord
5DodgeRam
6 Honda Civic
7NissanAltima
8HondaCR-V
9ToyotaCorolla
10FordEscape
1Wuling Hongguang
2 Wuling Sunshine
3FordFocus
4Volkswagen Lavida
5Wuling Rongguang
6 Toyota Corolla
7 Buick Excelle
8Volkswagen Sagitar
9 Chevrolet Sail
10VolkswagenJetta
Note: Cars that carry a component supplied by Grupo Antolin are marked with Source: Marklines, JATO, Autoblog
Top selling cars by market 2013
USAEurope China World
Business unit Description Key financials (2013A, EURm)
Overheadsystems
(51% of revenues in
2013)
� A world leader (TIER I) by mastering modular solutions and incorporatinglighting, sunvisors, panoramic systems, etc
Revenues: €1,084m
EBITDA: €104m
Margin: 10%
Doors
(34%)
� Strong position in door trims and interior plastics with a wide range of modular solutions
Revenues: €727m
EBITDA: €95m
Margin: 13%
Seating
(9%)
� Development and production of high added-value light-weight seats for multi-purpose vehicles, light commercial vehicles and vans
� Technological leadership in fold-into-floor and removable seats
Revenues: €186m
EBITDA: €20m
Margin: 11%
Lighting
(6%)
� New unit following the acquisition in January 2012 of the French company CML Innovative Technologies, a leading manufacturer in Europe
Revenues: €130m
EBITDA: €21m
Margin: 16%
4
Tier-1 supplier of high value added interior trim s olutions for the automobile industry
14
Our products
Leading positions in core markets
Highly diversified business model
Long-standing and strategic contractual customer re lationships with main OEMs
Attractive market fundamentals
Strong innovation track record
Superior profitability and strong financial track r ecord
Experienced management team and committed core shar eholders
Overheadsystems
Seating
Lighting
Doors
4 Strategic Business Units
5
Grupo Antolin
Section 2Key credit highlights
7
Summary credit highlights
1
2
3
4
5
6
7
Leading positions in core markets
Highly diversified business model
Long-standing and strategic contractual customer re lationships with main OEMs
Attractive market fundamentals
Strong innovation track record
Superior profitability and strong financial track r ecord
Experienced management team and committed core shar eholders
7% 7%
8
Leading position in core markets
Company estimates of market shares and ranking for several products in Antolin markets (2013)
1
11
1
1
Note: The number within each graph represents the position of Grupo Antolin in the ranking. Otherwise information is not available or not representative. Darker colored countries represent Grupo Antolin Production/JIT presence. Market shares are based on number of vehicles equipped
Source Vehicle volumes based on LMC Automotive Q1 2013. Market shares based on company estimates.
Overhead systems LightingDoors Ranking as main supplierSeating
NAFTAMarket size: 15.8m vehicles
WorldwideMarket size: 83.4m vehicles
MercosurMarket size: 4.5m
IndiaMarket size: 4.1m
EuropeMarket size: 18.7m
3
1
5
12%
1
39% 26%
46%
58%
23%
30%
Spain17%
Eastern Europe
13%
Western Europe
26%
NAFTA26%
Asia-Pacific11%
Mercosur6%
Other1%
2007 2013A
Geography
Client
Product
Spain31%
Eastern Europe
9%
Western Europe
36%
NAFTA16%
Asia-Pacific1%
Mercosur6%
Other1%
9
Highly diversified business model
2007 revenues: €1,685m
Newly opened markets
Higher client diversification
New business lines
2013 revenues: €2,128m
Europe: 56%Europe: 76%
2
Group
Others
Group
Headliners42%
Doors42%
Seating14%
Other2%
27%
17%
17%
13%
7%
5%
4%3%
7%
(a) (a)
(a) Excluding Spain
Overhead49%
Door36%
Lighting6%
Seat9%
27%
19%
6%10%
6%
5%
5%
5%
4%3%
10%
Seating Lighting
Overhead systems Doors
10
Highly diversified business model (cont’d)
Others
Others
Group
Others
Group
Group
Others
2
2013 revenues: €186m 2013 revenues: €130m
2013 revenues: €1,084m 2013 revenues: €727m
2000 2007 2013A
11
3
€1,685m
€2,128m
Group
Other
Group
€627m
27%
17%
17%
13%
7%
3%4%
5%
7% 8%
3%3%3%
4%
5%
11%
12%
14%
15%
23%
Other
Long-standing and strategic contractual customer re lationships with main OEMs
Other
Group
nm
Detailed Information (2013A)
Note: Revenues split by brand
Comfort and affordable price
Sustainability and safety
Globalisations of platforms
Consolidation of supplier base
Technological partnerships with OEMs
Growth outside traditional markets
12
Attractive market fundamentals – vehicle production continues to grow
Vehicle production continues to grow globally with 5% CAGR expected through 2016
Source: LMC Automotive Q3-2013
CAGR 12 – 16
Mercosur
CAGR 12 – 16
Europe
Asia Pacific
CAGR 12 – 16
1.9%
CAGR 12 – 16
Rest of the World
2.2%4.8%
6.7%
5.9%
CAGR 12 – 16
NAFTA
4
7.9 7.5 7.8 8.1 8.5
2012
A
2013
E
2014
E
2015
E
2016
E
Veh
icle
pro
duce
d in
m
illio
ns
3.2 3.6 3.6 3.9 4.120
12A
2013
E
2014
E
2015
E
2016
E
Veh
icle
pro
duce
d in
m
illio
ns
13.0 13.7 14.2 15.0 15.6
2012
A
2013
E
2014
E
2015
E
2016
E
Veh
icle
pro
duce
d in
m
illio
ns
17.9 17.4 17.7 18.4 19.5
2012
A
2013
E
2014
E
2015
E
2016
E
Veh
icle
pro
duce
d in
m
illio
ns
39.5 40.9 43.9 47.6 51.2
2012
A
2013
E
2014
E
2015
E
2016
E
Veh
icle
pro
duce
d in
m
illio
ns
1
2
3
4
5
6
Key drivers/trends
66
48 47 4854 58
2008A 2009A 2010A 2011A 2012A 2013A
4.2% 3.9% 2.9% 2.6% 2.6% 2.7%
Overhead systems
� Environmentally friendly polyurethane
� 1-shot edge wrapping
� Panoramic windshield sunblind
� New thermoforming technology
Doors� Chemical foaming
� Novaform extrusion compression process
� Lightweight technologies for injected thermoplastic
� DTM
Seats� Lightened seats
� Drop & Go
� Hybrid technology
� Fold-into-floor
Lighting� Fully integrated lighted headliner
� Supright / Door panel
� Interior ambient lighting
� Capacitive sensors
Total effort in R&D&I (€m)
Key focus (R&D&I) Key examples
� The company focuses its R&D&I in three main areas:
– Smart interiors – Supporting our customers’ brand strategy is key to end user experience and perceived quality based on customization
– Materials – Focused mainly on weight reduction and the use of green materials (recyclable / recycled)
– Industrial flexibility – Innovative processes to produce different functions
� Over 440 technical solutions registered
� Number of employees in engineering functions increased from 546 in 2009 to 819 in 2013
13
Strong innovation track record5
As % of revenues
487 421 427
503 571
4.3x2.3x 2.0x 2.2x 2.4x
2009A 2010A 2011A 2012A 2013A
Net financial debt Net financial debt/EBITDA
93 85
117 121 120
7.5%5.2%
6.2% 5.8% 5.7%
2009A 2010A 2011A 2012A 2013ACapex % sales
14
Superior profitability and strong financial track r ecord
Targeting a flexible balance sheet
Successful operating performance(€ millions)
(€ millions)
� Strong (organic) topline growth – CAGR Sales (2009A – 2013A): +14.3%
� Strong EBITDA margin – above 10%
� Conservative leverage below 3x despite add- on acquisition in 2012
Note: Grupo Antolin migrated in 2006 from Spanish accounting standards to IFRS(a) For the purpose of this presentation, we have defined Free Cash Flow as: EBITDA – Change in WC – Capex – Cash Taxes(b) Net debt includes non recourse factoring and soft loans
Highly resilient business model
(b) (b)
6
1,248 1,637
1,876 2,087 2,128
9.2%11.2% 11.2% 10.7% 11.2%
2009A 2010A 2011A 2012A 2013A
Consolidated sales EBITDA %
Balanced investment strategy(€ millions)
Cash flow generation (a)
(€ millions)
� Focused investment plan oriented towards value added products and selected complementary inorganic opportunities
� Sustained cash flow generation at an average of 3.5% of revenues
25
92
35
93 802.0%
5.6%
1.9%
4.5%3.8%
2009A 2010A 2011A 2012A 2013AFCF % sales
15
Experienced management and committed core sharehold ers
Proven commitment to profitability
International expansion including greenfield projects
Successful integration of
multicultural teams
Strategic long-term relationship with
key clients
Longtime commitment to
the Group
* Member of Grupo Antolin´s Steering Committee
7
� 28 years of international experience with the Group
� 21 years of experience with the Group
� 24 years of experience with the Group
� Chairman since 1995 and co-founder in the 1950s
� 23 years of experience with the Group
� 35 years of experience with the Group
Special strengths of the management team
José Antolin
Chairman and Founder
Ernesto Antolin
Vice Chairman
José Manuel Temiño
Chief Executive Officer*
Jesús Pascual
Chief Operating Officer*
Miguel Ángel Vicente
Chief Commercial Officer*
Luis Vega
Chief Financial Officer*
�Highly experienced management with long-term track record with Antolin
�Family shareholders with long-term commitment provi des stability and focus on long-term value generation
�Strong personal and financial commitment by family shareholders
Grupo Antolin
Section 3Operational and financial overview
SP
A � 20 operating sites (1 JV)� 1 tech-commercial office
GE
R � 10 operating sites� 7 tech- commercial offices
FR
A � 7 operating sites� 4 tech-commercial offices
UK � 5 operating sites
� 2 tech-commercial offices
BE
L
� 1 operating site
ITL � 2 operating sites
� 1 tech-commercial office
CA
N
� 2 operating sites
US
A � 8 operating sites (1 JV)� 1 tech- commercial office
SK � 1 operating site (1 JV)
� 1 tech-commercial office
JPN
� 1 tech-commercial office
CZ
E � 10 operating sites� 1 tech-commercial office
PO
R
� 3 operating sites
SLV � 3 operating sites (1 JV)
17
Note: Dots indicate presence in the country, not number of facilities
25 countries, more than 120 manufacturing and JIT f acilities (Just in Time), 25 TCO (Technical Commercial Offices)
PO
L
� 1 operating site (1JV)
RU
S
� 3 operating sites (1JV)
TU
R
� 4 operating sites (1JV)
RO
M
� 1 operating site
ME
X � 6 operating sites (1 JV)� 1 tech-commercial office
BR
Z � 4 operating sites (1 JV)� 1 tech-commercial office
AR
G
� 1 operating site (1 JV)
PR
C � 17 operating sites (7 JV)� 2 tech-commercial office
IND � 5 operating sites (1 JV)
� 1 tech-commercial office
TH
A
� 2 operating sites (1 JV)
MO
R
� 2 operating sites
SA � 3 operating sites
� 1 tech-commercial office
Technical-commercial officesProduction Assembly and sequencing
Low cost countries
True global footprint – proximity to key OEMs
129 114
184 210224 238
8.2%9.2%
11.2% 11.2% 10.7% 11.2%
0%
3%
6%
9%
12%
0
50
100
150
200
250
300
2008A 2009A 2010A 2011A 2012A 2013A
(%)(€
m)
EBITDA (€m) % margin
18
� Antolin’s long-term growth has been driven by international expansion, new customers and underlying growth in global automobile industry
� Revenue growth in 2013 was lower due to Antolin’s soft European demand and weakening USD
� EBITDA margin improved due to continued focus on low-cost manufacturing, development of products with higher profitability and the acquisition of Lighting business unit
Strong and profitable growth underpins Antolin’s bu siness model
Revenues (€m) EBITDA (€m)
Comments
1,564
1,248
1,637
1,8762,087 2,128
(7.2)%(20.2)%
31.2%
14.6%
11.2%2.0%
(30)%
(10)%
10%
30%
50%
70%
90%
110%
0
500
1,000
1,500
2,000
2,500
2008A 2009A 2010A 2011A 2012A 2013A
(%)
(€m
)
Revenues % growth
19
Maturity profile, as of 31 March 2014
Gross Debt 31 March ’14EUR 723m
Net Debt 31 March ‘14EUR 593m
� EUR 400m Senior Secured Notes
� EUR 200 Senior Financing
� EUR 70m ADE Facility
� EUR 13m Soft Loans with cost; EUR 32m have no cost
� EUR 40m Other Facilities, of which EUR 28m are credit lines
� EUR 221 Undrawn Revolving Credit Facilities
� Cash available of EUR 130m
� For covenant purposes, Net Debt totalled EUR 593m,
representing 2.5x NFD/LTM EBITDA
9 17 2956
8910
10
10
10
10 10
400
2014 2015 2016 2017 2018 2019 2020 2021
Term Loan ADE loan Soft loans Leasings Senior Secures Notes Other loans
20
Financial policy
Target leverage� Long-term target leverage (Net debt / EBITDA) of around 2x
� Deleveraging strategy in conformity with investment approach and cautious dividend policy
M&A / investments
� No transformational acquisitions anticipated
� Selective add-on acquisitions may be considered in case of strong strategic rationale and
if financially solid
Dividend policy
� Conservative dividend policy– 2014: €0m– 2015: €6m
� Family shareholders focused on value generation rather than dividends
Working Capital and Capex
outlook� In line with historic averages
21
Q1 2014 performance
336,5 294,2
163,3166,3
31,725,2
2030,6
Q1 2104 Q1 2013 PF
EU
Rm
Europe NAFTA APAC Mercosur Others
302,2 294,7
156,7 151,5
57,4 43,3
40,031,6
Q1 2104 Q1 2013 PF
EU
Rm
Overheads Doors Seating Lighting
+27%
+33%
+3%
+3%
+7%
+26%-35%
-2%
+14%
556.4521.1
29,9 27,1
21,917,0
8,1
3,9
7,4
5,1
Q1 2104 Q1 2013 PF
EU
Rm
Overheads Doors Seating Lighting
+46%
+109%
+29%
+10%
+25%
Note: Q1 2013 data is Pro Forma for IFRS 11
68.2
54.6
Revenues EBITDA
22
Q&A
23
Back-up
24
Name Location Approx. Investment Product Clients Expecte d opening dates
Missouri Kansas (USA) US$ 12.6m Overhead systems Ford + GM May-2014
Valplast Sollana-Valencia (Spain) EUR 12.7m Doors Ford + Nissan Sep-2014
Gujarat Sanand (India) EUR 4m Overhead systems & Doors Ford Nov-2014
Sibiu Sibiu (Romania) EUR 5.5m LightingRenault + Nissan +
PSA + DiversJun-Dec-2014
G.A. Wuhan Hubei (China) EUR 7.3m Overhead systems & Doors Renault Dec-2014
Hangzhou Zhejiang(China) EUR 252k JIT Overhead systems Ford May-2014
Xiangyang Hubei (China) EUR 60k JIT Overhead systems Nissan May-2014
Nanchang Jiangxi (China) EUR 60k JIT Overhead systems Ford Feb-2015 (Q1)
Status of the plants under construction/development
Free Cash Flow – impact of December non-recourse fac toring
282 257
433
203
159
-429 -403
-600
-400
-200
0
200
400
600
800
Mar 2014 Dec 2013
EU
Rm
242 234
412211
2
166
-406 -394
-600
-400
-200
0
200
400
600
800
Mar 2013 Dec 2012
EU
Rm
Inventories Trade Receivables Fact. Trade Receivables Trade Payables
+71
+26
-26
+71
+36
+8
-12
+32
� Net working capital increased by €71m in the threemonths ended March 31, 2014
– Traditional seasonality swings betweenDecember and March
– Q1 2014 reflects (i) especially strong salesgrowth and (ii) efficient 2013 year-end closing
– 31 December data includes € 159m in non-recourse factoring. Factoring Agreement wascanceled in March 2014
– The Group is committed to maintaining its year-end working capital in line with historic averagesof c. 9.5% of sales
� Q1 2013 change in working capital amounted to€32m, including €166m in non-recourse factoredreceivables
� Remaining FCF elements for the quarter ending 31March 2014:
– EBITDA € 68m
– Capex € 25m
– Cash taxes € 4m
25
WC as % of LTM Sales= 9.3%
WC as % of LTM Sales= 8.9%